Slide 1: Investor Presentation April 2023
Investor Presentation April 2023 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements concerning our bus
Slide 3: Investment Highlights
Investment Highlights Investment grade tenancy provides consistent performance through all economic cycles ▪ High-quality tenancy creates bond-like leases with high rent collections during times of High-Quality, Diversified, and disruption Defensive Net Lease Retail Portfolio ▪ 82.0% of portfolio co
Slide 4: Stable & Predictable Cash Flow Profile Drives Superior Risk-Adjusted Returns
Investment Highlights NTST's Stable & Predictable Cash Flow Profile Drives Superior Risk-Adjusted Returns Investment Grade %1 68% 67% 61% 33% 20% 18% 0% ADC NTST FCPT O SRC NNN EPRT Lease Rollover Lease Rollover % ('23-'26) WALT 13.9 9.4 8.3 8.8 9.7 10.4 9.5 18.8% 15.0% 15.2% 13.3% 8.1% 6.1% 3.6% EP
Slide 5: Investment Highlights – Portfolio Overview
Investment Highlights – Portfolio Overview High-quality, diversified portfolio consisting of 67.1% investment grade tenants across 45 states Key Portfolio Stats Top 10 Tenants by % of ABR Investments1 488 States 45 BBB 9.2% Portfolio Square Feet (in millions) 8.8 Tenants 83 BBB 7.9% Retail Sectors 2
Slide 6: Portfolio Diversification In Defensive Retail Sectors
Investment Highlights - Portfolio Diversification In Defensive Retail Sectors NETSTREIT offers a national diversified portfolio comprised primarily of recession resilient retail tenants 54.1% 17.1% Top Industries Necessity Discount 1 Drug Stores & 17.1% Pharmacies: 2 Grocery: 12.2% 87.0% 3 15.9% of
Slide 7: Investment Highlights – Strong External Growth Profile
Investment Highlights – Strong External Growth Profile Cumulative Investments Since 20191 ($ in millions) 433 Completed Investments Investment Activity: 24 44 30 26 31 35 26 32 37 27 26 24 71 Avg. Acquisition Activity per Completed Quarter = $115 million $1,489 $1,361 $128.6 $1,257 $104.1 $1,125 $13
Slide 8: NETSTREIT's Foundation to Building a High-Quality Net Lease Portfolio
NETSTREIT’s Foundation to Building a High-Quality Net Lease Portfolio Established 1 Investment Guideposts Differentiated 6 Focus on ESG 2 and Multi- Faceted Acquisition Platform Scaled for Process Growth Provides Strong, Consistent Cash Flow and Performance 5 Strong 3 Stringent Real Estate & Tenant
Slide 9: Portfolio Strategy / Investment Philosophy
Portfolio Strategy / Investment Philosophy Investment Philosophy Portfolio Strategy Current Metrics Defensive Tenancy in Necessity-Based and Primarily 87.0% E-commerce-Resistant Retail Industries1 82.0% Resilient, Cycle-Tested Investment Grade Credit (67.1% Investment Grade >60% Tenants with Durable
Slide 10: Acquisition Strategy – Bell Curve Investing
Acquisition Strategy – Bell Curve Investing NETSTREIT’s acquisition strategy is to focus on the right side of the bell curve, where assets are inefficiently priced, and risk adjusted returns are higher Efficiently Priced Inefficiently Priced Assets Assets TYPICAL TRANSACTION TYPICAL TRANSACTION - No
Slide 11: Acquisition Execution – Generating Robust Deal Pipelines
Acquisition Execution – Generating Robust Deal Pipelines The team’s extensive experience in the net lease space, combined with industry relationships, provides attractive acquisition opportunities Utilization of a multi-faceted acquisition strategy to deploy capital allows greater flexibility to qui
Slide 12: Case Study: Speedway Loans
Case Study: Speedway Loans Senior Secured Loans Funded: March 2023 Investment Highlights • $46.1 million loan (~60% loan-to-value) provided the borrower funding to acquire a 49 property Speedway portfolio • 3-year term • Interest rate: 9.3% • Security Position: 1st lien senior secured with no capita
Slide 13: Stringent Underwriting Process – Three-Part Process
Stringent Underwriting Process – Three-Part Process NETSTREIT leverages a disciplined, three-pronged approach to underwriting potential acquisitions which positions the Company to benefit from superior downside protection on its investments A B C Level of Underwriting Emphasis TENANT CREDIT UNDERWRI
Slide 14: Strong Tenant Credit Underwriting – Drives Consistent Revenue Growth
Strong Tenant Credit Underwriting – Drives Consistent Revenue Growth NETSTREIT employs a credit-focused underwriting strategy for all tenants that drives stable revenue and long-term return on investment Investment Grade Profile Sub-IG (rated) & Investment Grade (rated) (unrated) Sub-IG Profile (unr
Slide 15: Real Estate Valuation
Real Estate Valuation Real Estate closely follows Credit as a top priority: NETSTREIT utilizes a ground-up framework rooted in real estate fundamentals to underpin its valuation and further quantify the upside potential for a transaction Market-Level Considerations Property-Level Considerations • Va
Slide 16: Unit-Level Profitability
Unit-Level Profitability In assessing unit-level financial performance, NETSTREIT focuses on mission-critical properties with strong rent coverage and higher variability in operating costs 1 2 3 Obtain Financial Information Perform Financial Analysis Assess Investment Merits • Provides clarity into
Slide 17: Active Asset Management
Active Asset Management NETSTREIT continuously tracks property performance and stratifies the portfolio to achieve consistent cash flows and balanced growth for its investors Strategic Recycling Active Monitoring Leverage 1031 exchange Periodically review all transfers where possible properties for
Slide 18: Fortified Balance Sheet Positively Positions Us for Future Investment Opportunities
Fortified Balance Sheet Positively Positions Us for Future Investment Opportunities Liquidity: BALANCE SHEET ▪ $304.0 million of unused revolver capacity ▪ $91.2 million of unsettled forwards $402 million ▪ $6.6 million of unrestricted cash Total Liquidity ▪ TOTAL LIQUIDITY: $401.8 million 5.1x Leve
Slide 19: Corporate Responsibility
Corporate Responsibility NETSTREIT is committed to fulfilling its responsibility as an outstanding corporate citizen The Company’s mission is to be the leader in the net lease industry by practicing and implementing innovative, impactful Environmental, Social and Governance policies with the highest
Slide 20: Corporate Responsibility
Corporate Responsibility NETSTREIT aligns its corporate responsibility efforts to support that of the United Nations Sustainable Development Goals (SDGs). Promote health and well-being in our offices. Company provides insurance Promote sustained, inclusive, full and benefits to our employees and fam
Slide 21: Environmental Responsibility
Environmental Responsibility Our top tenants have corporate sustainability programs that govern their business operations. 18 of our top 20 tenants in our portfolio have ESG commitments ENVIRONMENTAL SOCIAL Eco-Friendly Plastic Usage/ Renewable Water Waste Community Product GHG/CO2 Products/ Agricul
Slide 22: Environmental Responsibility – Reducing Interest Costs
Environmental Responsibility – Reducing Interest Costs To showcase our commitment to the reduction of greenhouse gas emissions, we incorporated to our $600 million credit facility, a sustainability-linked loan feature based on the Science Based Targets initiatives (“SBTi”). SBTi Tenants SBTi Targets
Slide 23: Social Responsibility – Diversity Strengthens Workforce
Social Responsibility – Diversity Strengthens Workforce Human Capital Management is the Cornerstone of our ESG and Corporate Strategy. We believe in the value of a diverse workforce and inclusive culture. Workforce Diversity Benefits 401K Plan Leave 100% company match of up to a Ten weeks of paid ma
Slide 24: Corporate Governance
Corporate Governance We are committed to acting with honesty and integrity and conducting all corporate opportunities in an ethical manner Governance Highlights Board Independence and Diversity No poison pill or differential Annual Director voting stock structure to Elections chill shareholder parti
Slide 25: Senior Leadership with Deep Expertise
Senior Leadership with Deep Expertise Seasoned leadership team with significant net lease retail and public company experience High-Quality Real Estate Portfolio Conservative Capitalization Mark Manheimer Daniel Donlan President, CEO & Director CFO & Treasurer Mr. Manheimer leads the overall Mr. Don
Slide 26: Key Personnel
Key Personnel Experienced team of professionals drive NETSTREIT’s day to day operations High-Quality Real Estate Portfolio Conservative Capitalization Jeff Fuge Trish McBratney-Gibbs Senior Vice President, Acquisitions Senior Vice President and Chief Accounting Officer • Joined in December 2019 • Jo
Slide 27: Board of Directors
Board of Directors In addition to Mr. Manheimer, the Company’s board is comprised of six independent directors, each possessing diverse backgrounds in industry, public company and investment experience Todd Minnis Matt Troxell, CFA Lori Wittman Robin Zeigler Heidi Everett Michael Christodolou Chairm
Slide 28: Definitions
Definitions ABR means annualized base rent. ABR is annualized contractual base rent in place as of the most recent quarter end for all leases that commenced as of that date, and annualized cash interest on mortgage loans receivable in place as of that date. Defensive Category is considered by us to
Slide 29: Investor Relations
Investor Relations ir@netstreit.com 972-597-4825 29